Matter to Be Remanded Back for Reconsideration Since AO Failed to Consider Supporting Documents Regarding ITC Claim | HC

Case Details: Brakes India (P.) Ltd. v. Assistant Commissioner (ST) - [2024] 164 taxmann.com 601 (Madras)

Judiciary and Counsel Details

• Senthilkumar Ramamoorthy, J.
• N. Murali for the Petitioner.
• C. Harsha Raj, Addl. Govt. Pleader for the Respondent.

Facts of the Case

The petitioner received a notice to show cause as to why the Input Tax Credit (ITC) should not be denied to the petitioner. The department alleged that the supplier of the petitioner was involved in fake billing and the petitioner failed to discharge the burden under Section 155 of CGST Act, 2017 to establish that the petitioner was entitled to ITC. The adjudicating authority passed the order and rejected the ITC claim of the petitioner on the ground that the same were fabricated by the supplier.

The petitioner filed writ petition and contended that it submitted all relevant documents such as the purchase orders, the tax invoices, e-way bills, weighment slips at the supplier end, weighment slips at the tax payer’s end, bank statement reflecting payments made to the supplier, etc. but the department rejected the documents.

High Court Held

The High Court observed that the impugned order was passed without considering the documentary evidence and it was liable to be set aside. The Court also held that the department was directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and thereafter issue a fresh order within three months from the date of receipt of the additional reply from the petitioner.